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Financial Planning / Tax Strategies


Subject:  Re: Trading Commission Date:  3/13/2001  12:37 PM
Author:  irasmilo Number:  48306 of 127907

When we sell or buy stocks, is the trading commission considered within Capital Gain/Loss? For example, if I were to buy 10 shares of ABC stocks at $10 + $12 Commission) and I decided it was a tanking company, so I sold 10 shares of ABC stocks at $10 + $12 Commission), can I write the $24 as a loss or based on IRS, it's irrelevant and I eat the Commission?

The $24 is a loss. If you held ABC for one year or less, it is a short-term capital loss (Sch D line 1). If one year and a day or more, it is a long-term capital loss (Sch D line 8).

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